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July 12 (Reuters) - NEX Group Plc, the financial trading and technology company, reported a rise in first-quarter revenue as financial markets started to move towards more "normalised" conditions despite low volatility, after interest rate rises in the United States and better economic conditions in Europe.
The company, which provides electronic trading platforms for banks, asset managers, hedge funds and companies, posted a 10 percent increase in revenue for the three months to June, once currency fluctuations are stripped out.
NEX, which was known as ICAP until the sale of its voice broking business to TP ICAP last year, said trading activity at its NEX Markets unit was held back by low volatility, with episodes of increased activity around the French election and a U.S. rate rise.
The unit, which provides foreign exchange and fixed income electronic trading technology and services via its EBS and BrokerTec platforms, delivered 11 percent revenue growth on a constant currency basis, while reported revenue rose 20 percent in the quarter.
Average daily volumes on EBS - a platform where banks and other major institutions trade the euro, yen and Swiss franc against the dollar - were down 3 percent to $80 billion since the start of the year.
NEX said FX volatility had "waned" since the start of 2017, especially in G3 currency pairs - the U.S. dollar, euro, and Japanese yen- despite the Federal Reserve increasing rates.
NEX said in May that trading activity since the start of the year had remained subdued, with financial market volatility falling to historic lows in recent months, despite global and political uncertainty.
The company gave a cautious assessment of its 2017 prospects in February, with muted January trading volumes casting a shadow over better than expected third-quarter revenue.
Trading platforms had benefited from increased market activity after unexpected political news last year such as Donald Trump's U.S. election victory and Britain's vote to leave the European Union, but the volatility caused by those events has been short lived. (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Rachel Armstrong)